U.S. Sees Rapid Movement On Mexican Trade Talks

By CLYDE H. FARNSWORTH, Special to The New York Times

Published: March 28, 1990

WASHINGTON, March 27—
The United States and Mexico are moving more rapidly than expected toward opening negotiations on a free-trade agreement, Administration officials said today.

The decision on starting such talks is likely to be announced in early June when Mexico's President, Carlos Salinas de Gortari, visits President Bush in Washington, the Administration officials said.

Such a pact, similar to one already in place with Canada, could lead to a North American common market from the Arctic to the Yucatan, embracing 350 million people.

Acceleration of Schedules

An early June announcement would represent a sharp acceleration of earlier schedules for the elimination of Mexican-American trade barriers, an idea that has been discussed on the American side since the early 1980's.

Deferring to Mexican political sensitivities about closer links with the giant to the north, Washington had not pressed for negotiations.

A statement issued by the Mexican Embassy today said a Mexican team was now ''analyzing possibilities'' to permit Mexican exports to ''reach the stable and growing U.S. market.''

''Once this analysis is concluded,'' it added, ''the governments of both nations will decide the best way to continue deepening their trade relationships.''

The statement followed a report in The Wall Street Journal that Mexican and American leaders had already agreed to negotiate such a pact. ''It cannot be confirmed that a free-trade agreement will be established between both countries, as the above mentioned article affirms,'' the statement added.

Younger Leaders a Factor

Now, however, Mexico has younger business and Government leaders who, according to American officials and other analysts, see increased trade, investment and technology flows as essential to strengthening competitiveness and general well-being.

''There is more confidence, more a sense of common interest with the United States and more a feeling that Mexico can be a beneficiary of trade with the United States,'' said Robert E. Herzstein, a former Under Secretary of Commerce for international trade.

Last year Mexico enjoyed a $2 billion trade surplus with the United States and ranks after Canada and Japan as the third-biggest American trading partner.

Also contributing to greater interest in free trade by Mexico is the democratization of Eastern Europe, placing it in competition for the multinational investment capital that Mexico hopes to get through closer economic ties with the United States.

''A free-trade agreement would buy security of access to the American market that would galvanize investment in Mexico,'' said Guy F. Erb, a Washington consultant specializing in Mexican business.

Rise in Canadian Spending

The free-trade agreement with Canada, which went into effect Jan. 1, 1989, has led to a robust increase in capital spending in Canada. There has also been agreement to accelerate some tariff cuts that were to be made over a 10-year period.

A Canadian Embassy spokesman, Malcolm McKechnie, said his Government would follow Mexican-American negotiations ''with interest'' and seek ''assurances Canadian interests were safeguarded.''

During his Washington visit, President Salinas will address the June l1 annual meeting of the Business Roundtable, a group of 200 chief executives of the biggest American companies. A Business Roundtable working group, headed by Colby H. Chandler, chief executive of the Eastman Kodak Company, is preparing a report on economic relations with Mexico that is expected to be published between now and June.

The United States trade representative, Carla A. Hills, said today that no agreement existed at this time to negotiate a free-trade agreement, and declined to speculate on what might happen in June. But she insisted that whatever occurred would not affect the Uruguay Round of multilateral trade negotiations, which is expected to be concluded next December, well before any free-trade talks would actually begin between Mexico and the United States.